PVR (Per Vehicle Retail)
Definition
The total average gross profit generated per retail unit, combining front-end and back-end income.
Why It Matters
PVR is the most critical metric for measuring F&I department performance. Increasing PVR directly impacts dealership profitability and demonstrates the value of effective F&I management.
Examples
- If your dealership sold 100 vehicles and generated $150,000 in F&I profit, your PVR is $1,500
- Industry average PVR ranges from $1,200-$1,800 depending on market and product mix
Related Terms
PRU (Products Per Retail Unit)
The average number of F&I products sold per vehicle, calculated by dividing total products sold by total retail units delivered. A PRU of 2.0 means you are selling an average of 2 products per car.
Penetration Rate
The percentage of customers who purchase a specific F&I product out of total retail units sold.
Backend Gross
Total profit generated in the finance office per retail unit, including products and finance reserve.